Trade12 review blog aims to deliver the most exceptional online trading services to its clients.

Month: February 2018

Most people would dream of having a well-paid job and finances to be able to live a better life. Improving your earning potential allows you to stretch your budget on important things. However, more often than not, what happens is that when a person’s income increases, so do their lifestyle. This concept is commonly known as lifestyle inflation. It means that when a person’s salary expands, their spending habits become greater, too.

In this article, you are going to learn on how to avoid lifestyle inflation and ensure that you are living within your means and that you are using the added money for significant things. Making plans on how to use the money to ensure financial security is an advantage.

The best way to avoid something is to be conscious about it

As you transition from a phase where you have “enough” money to a period where you earn some “extra,” it gives you the feeling like you deserve to enjoy life for a moment. However, what happens is that such extends until a period where you find yourself struggling with your finances as you were not able to save up for what is essential.

The added amount on your paycheck must not be regarded as “fun” money but rather a means for you to be able to prepare for your future.

The best way to avoid something is to scrutinize it thoroughly

When you receive a raise, you have to understand that you really cannot enjoy the whole amount added to your salary. This is because taxes take a toll on your money. You have to take the time to look into your budget and realize that the extra money does not necessarily mean that you can spend it on expensive items and dine outs.

The best way to avoid something is to control it

If you want to protect the extra money you get from a salary raise, you have to transfer it to another savings account as soon as possible. If you only have a single bank account, it is advisable that you set up another one so you can be able to transfer your extra money into that account. This helps you avoid spending it on unnecessary things.

Another strategy is to set up your account automatically, wherein the excess money can be transferred after every pay period to your savings account without becoming hesitant of what you should do with your money every time.

The best way to avoid something is to have a clear goal in mind

Failing to create clear personal objectives lures you to spending the extra money on items that do not bring you a step closer to your goal. Sit down and think thoroughly about the goals that you wanted to achieve either in a short span of time or for something that is long-term.

You are less inclined to using up the extra money if you stay focused on your goals and how much self-control you need to have in order to definitely achieve them.

Conclusion

It is really tempting to know that you have the extra money in hand after a raise. But with the above-mentioned tips, you now have the choice how are you going to use your money in order to meet both of your short-term and long-term goals. Follow these simple ways to avoid lifestyle inflation.

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The market can undergo tough days as it can go through good days. Such instance is not surprising, since a stock market correction is just around the corner. It would be alarming if the market would not have a period of correction and crash.

If a stock market correction happens, what are the advisable actions that an investor must do?

Do Nothing

A wise investor is someone with a financial plan and an investment strategy at the same time. If a stock market correction happens, it does not necessarily mean that you need to do something immediately. Making a certain move in reaction to the correction is not really an advisable move. The least you can do is to wait until the market volatility settles somehow. The sound advice for investors is to – “relax.” Hold, as it will work itself out.

Do Calm Down

Do not panic. Panic will just cost you a lot of money. Crashes happen once in a blue moon. To be able to think appropriately, you first have to calm yourself before making any move.

Market corrections are a normal part of a stock market cycle. No investor can control or counteract such events. What you can do is to set up your portfolio so that it can withstand unforeseen and untoward events such as a market correction.

Do Ignore the Media

News deliver good information and it is highly essential that you know what is happening with market trends. However, during periods of market correction, news can highlight fear which may in turn cause the investor to panic. The media is not the proper venue for you to be during such times. It is advisable that you go back to your financial plan and investment strategy to aid you during such phase.

Do Review Your Portfolio

As the saying goes, there is always a positive to every negative. This means that during a market correction, you can take advantage of such incident to assess the performance of your portfolio. If you find yourself fearing the effect of the correction to your portfolio, then maybe it is high time that you review your asset allocation. If you think that you cannot do it alone, you can always ask for the help of a professional financial advisor to review your portfolio and employ the necessary strategy.

Conclusion

Admit it, stock market corrections are frightening. In this era of fast information dissemination and a wide range of media when it comes to updates, investors are advised to remain calm before reacting. Investors might find themselves at a loss during such periods; however, it is a part of reality that markets tend to correct at some time. As a wise and smart investor, you have to factor such unfortunate event to your plans.

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In assessing others’ level of wealth, as well as your own level, it is important to have a sound measurement on your financial situation. Merely assessing someone by just their lifestyle and the kind of car they drive are just one of the many myths people believe to be true in order to say that someone is doing well in life. Certainly, there must be a sensible way in determining the financial position of a person.

Find out in this post the definite stage of wealth you are into at the moment. There will be different stages that will be discussed, and here they are:

Stage 1 – Financial Solvency

You are in wealth stage 1 if you can pay your bills on time and be able to save even a small chunk from your income. Generally, the standard when it comes to saving is a minimum of 10%. Yes, saving can help you be financially independent; however, you will need three decades at a minimum for you to be able to enjoy your money.

Stage 2 – Financial Stability

Stage 2 requires you to have an emergency fund that you can use anytime an unwanted financial situation happens, i.e. hospitalization. If the emergency fund is lacking, there is a higher chance that you will be inclined to spending a portion or even the whole of your savings.

You cannot say that you are in the financial stability stage if you have not surpassed the solvency stage. You must be financially solvent first before becoming financially stable.

Stage 3 – Debt Freedom

As the name says it, a person is considered to be on this stage if he or she had finished paying all of his or her debts. A lot of people usually reach this stage a few years before retirement, between 40-60 years old. This stage is hard to achieve, as there are mortgage and vehicle offers wherein the pay period range from 25 years and above.

A person is said to achieve this stage if the first two stages have been attained.

Stage 4 – Financial Security

You are said to reach this stage when you already have a positive cash flow which you can use to build wealth further. The person, then, is able to make his or her money work for him or her, allowing you to have a bigger amount of money than your annual gross.

Stage 5 – Financial Freedom

Financial freedom entails that as you let your money work for you, you are not only getting more financial sources aside from your gross income, but you are also given the opportunity to spend on extravagant things that you were not able to give yourself or your loved ones.

There are people that may think they are already in this stage since they can afford the extravagant things in life, but remember you must have confidently and truly surpassed the first four stages before considering yourself belonging in this stage. The word “afford” then might not really apply to you – you might just be spending on extravagant things without really becoming financially able to buy them.

Conclusion

The measurement of wealth mentioned in this post can be considered to be the concrete gauge for assessing in what particular stage of wealth you are into. Remember that, wealth cannot just be inferred from the accumulation of material goods.

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You probably have heard of companies announcing acquisitions of other companies or merging with other businesses and you might be wondering why other business owners agree with such offer. It is important to note that the primary motive lie in these simple phrases – and that is to make the most of shareholder wealth. This post will unearth the other underlying legitimate reasons why mergers and acquisitions happen.

Diversification

There are business firms that aim for diversification or a broader line of business and / or products. Sometimes a company merges with another company (of another industry) to diversify its line of business and / or business. The reason for this is to reduce the impact of that company to its own profitability.

It is like scattering its eggs, instead of putting all in one basket.

Refining Business Focus

Also, there are cases when a company merges with other companies having a deeper and wider market penetration which is essential for business operations.

Amplify Supply-Chain

When a company decides to buy one of its suppliers, it is able to both eliminate a percentage of costs (margins that the supplier adds to its costs). In addition, a company may also choose to buy one of its distributors for it to cut to a lower cost the shipment of its products.

Collaboration

This is also considered as synergy. As the Merriam-Webster online dictionary defines the word synergy, it means a combined action or operation which is considered as a mutually advantageous conjunction of elements. When synergy is given emphasis in mergers and acquisitions, the idea is that when businesses combine with one another, the opportunity to increase performance is boosted. It is also a way to decrease costs of a certain company.

Generally, a company will merge with another one if its strengths complement its weaknesses.

Growth

Mergers provide the acquiring company the chance to grow its market share even without putting much effort in doing the work themselves. A company may choose to buy a smaller competing company and authorizing it to produce more products and sell more to its loyal customers.

It can also mean a move to improve the financial stance of a certain company, especially if a company is in a deep financial problem, it may opt to look for another company that is willing to acquire it – just to go out of bankruptcy.

Eradicate Competition

A lot of mergers and acquisitions activities permit the acquirer to eliminate competition and increase market share of its products’ market. However, in order to convince the target company’s management to accept the offer, a large amount of money is needed.

Conclusion

Mergers and acquisitions happen since companies are after following key reasons: to protect their own business, to improve the strength of their business and to boost business profits. Nevertheless, just like any complex decision mergers and acquisitions can be either successful or disastrous – yet this depends on the strategies put in place by the collaborating companies.

You can earn bigger profits and execute better trades here at Trade12 by reading the latest market updates. Striving to become the best forex broker for you, Trade12 reviews daily market events essential to your trading activities to help you improve your overall trading performance. Register an account now and enjoy a wonderful trading experience!

A number of people say that buying IPO stocks is an exciting part when investing in the stock market. In order to make better investment decisions, it is important that one reads investing guidelines and know-hows. Analysis and understanding must be applied to better utilize your readings. If you are one of the people who are eyeing on investing in IPO stocks, written here are some tips you can take into consideration.

What is an IPO?

Initial Public Offering or IPO is the manner where the shares or stock of a private company is opened to the public. Usually, this is done by smaller, starting companies that seek to expand their capitals. For some cases, there are large private companies that would like to begin being publicly traded.

What makes IPO exciting?

Buying IPO stocks seem to attract the attention of both traders and investors in the stock market. Traders make the most out of the price rallies that follow after a company’s listing period. On the other hand, it is a chance for investors to be a part of a particular company’s beginnings until it grows massively in the market.

What are some of the tips that you can consider when dealing with an IPO stock?

1. Develop a plan

Knowing your financial goals matters a lot. Yet, as your goals begin to unfold before your very eyes, planning is an integral part. Following a trading plan helps you to stay on track and recognize your stock market strategy.

It can also help you come up with an educated decision if you should buy such IPO stock or even deciding if you are going to hold it for a short, medium, or long-term period.

2. Do your research about the company

In today’s social media age, cases of people giving in to herd mentality are increasing. There are people who believed instantly to an advice and then they get hyped afterwards. It is important to be cautious of stock market tips that you follow.

The best thing to do is to research and study the fundamentals of the company which will be out for an IPO. Is it a company looking for operations expansion or one that will use the money to pay enduring debts?

Consider a company that must qualify to any of the following: part of a growing industry, with good earning records, having a dependable management, offer top-quality and unique products and one having a robust balance sheet.

3. Steer clear of first day listing volatility

Avoid buying shares during the initial days of listing as this period is usually volatile. Basing it from history, IPOs do trade higher than that of their offering price during such stretch.

For short-term traders, they will do their profit-taking activity after several days. The ideal period to buy the IPO stock is after the correction period where the stock has recovered.

Conclusion

When dealing with an IPO stock, a well-informed investor can outpace and perform better than the others. A number of companies go public every month, it is best to apply the following tips mentioned in this post.

You can earn bigger profits and execute better trades here at Trade12 by reading the latest market updates. Striving to become the best forex broker for you, Trade12 reviews daily market events essential to your trading activities to help you improve your overall trading performance. Register an account now and enjoy a wonderful trading experience!

The Ten Commandments you have heard since childhood are laws used as standards that deal with man’s relationship to God and man’s relationship to his fellow human beings. These act like a manual for people on how to live a better life. Hence, these are like guidelines which help people to keep themselves out of trouble.

This article will teach you the counterpart of the Ten Commandments compressed into Five Commandments, to guide you in the world of investing and to keep your money in safe hands.

Is investing hard?

For the less knowledgeable, yes, investment is a hard concept and field to grasp; but for those who continue to enrich their knowledge, investing will come easy as it seems. Knowing the right principles and being able to adhere to these religiously can lead you to the path of investment success.

The Five Commandments of Investing

Thou shalt be clear with your goals and avoid gambling

What separates investors from gamblers is that investors follow a mathematical formula and concrete strategies to be able to profit from their move. Gamblers are not fond of such. They bet their money on unknown and uncertain outcomes.

Do not just invest for the thrill or fun, rather invest for profit. In order to do this, having the discipline is essential to reach financial security and consistent profits. Growing wealth has a science behind it. As a perfect analogy for this one, you should have a particular destination in mind so you would not be lost when you are already at the sea.

Thou shalt ensure that thy financial house is in regulation

One of the top responsibilities of an investor is to keep his or her personal finances in order first before jumping in the investing activity. Investing when you have debts scattered all around such as drowning in credit card bills and overdue fees can get you into serious problems sooner or later. Take care of your debts first before taking the plunge in the investing world.

Thou shalt need to exercise due diligence

Exercising due diligence in investing means that you invest within the scope of your understanding. If you do not understand something, it is not advisable to take the risk and invest. When exercising due diligence, it also means that you avoid rushing into making an investment decision. You need to study all positions first before putting in your money.

You need to increase your understanding to be able to come up to an informed decision. Exercising due diligence also means that you know what investment risk management strategies you need to apply to protect your capital from permanent loss.

Thou shalt avoid jumping on the bandwagon

This can be considered as having herd mentality (a well-known descriptor of human behavior since people learned to socialize) or the way people are being influenced by their peers to adopt some behaviors. This one applies greatly to the stock market. There is a difference between passive investing and passive investor. When you are a passive investor, you tend to digest all information presented to you and failing to thinking about it critically.

In the field of investing, you have to see things on your own in order to realize the true value of a stock.

Thou shalt continue to invest in thyself

As your investment portfolio and money grows, so your financial intelligence must increase as well. The level of your investment skills and knowledge reflects your investment results. If you want to improve your profits, you have to improve your financial intelligence.

Moreover, the best investment you can have is YOURSELF. As the good old saying goes, nobody can take away your learning and it can double, triple or even multiply your dividends a number of times for the rest of your life.

Conclusion

The above-mentioned guidelines can greatly help you with your investing career. Keep yourselves out of difficulties by observing these proven guiding principles.

You can earn bigger profits and execute better trades here at Trade12 by reading the latest market updates. Striving to become the best forex broker for you, Trade12 reviews daily market events essential to your trading activities to help you improve your overall trading performance. Register an account now and enjoy a wonderful trading experience!

Delaying retirement is not a common instance nowadays. Studies reveal that the average retirement age by Americans is age 62. A lot of people are retiring at age 65 or older since they find themselves not adequately prepared.

A number of retirees would solely depend on social security. If you are in your 50’s or 60’s and you feel that you aren’t yet ready for retirement, here’s how you can better prepare for the future. Ensure that you will have the funds you will need to enjoy a good life.

How do you picture yourself after retirement?

People have different concepts when it comes to retirement. There are people who wanted to spend the rest of their lives traveling, others wanted to ensure their children’s future, others would still want to work part-time to keep with the expenses, and a number would still be haunted by debts even after retirement.

Each person’s financial situation is unique. There is no one-size fits all retirement plan. If you are a firm believer of the saying, “it’s never too late,” then it is really never late for you. Especially when it is about retirement planning, do not let hopes abandon you.

What if you haven’t saved enough for retirement?

Most 60-year olds do not have enough money for retirement. This point in your life, you should take an honest perspective regarding money and retirement. Financially speaking, where are you compared to your peers? If you are lagging behind your peers, it is not the right time to get discouraged. Do not get stuck on that comparison – you just do what you can with the remaining time.

Why do you need to preserve your capital?

Individuals retiring soon should focus themselves on capital preservation. Capital preservation means putting your hard-earned money in conservative investments and keeping a practical lifestyle. Your retirement savings must last longer – such as living on less but with sufficient money to live with and not worrying about the years to come.

You must choose the best investment strategy where you can meet your needs and goals. You might want to divert your money to income-producing yet conservative type of investments.

Where should you start after a period of contemplation?

You might not be able to do it on your own. When talking about retirement, there are a number of factors that one needs to consider. This is where the role of a financial advisor enters the picture. A financial advisor can help you assess your risk tolerance, time horizon, investment knowledge and understanding, targets and how interest rates can affect you.

Advisors can help you increase your income-producing investments to get you ready by the time of your retirement. Aside from that, advisors can help you choose the right kind of investments depending on your goals.

You should also take into consideration that inflation, increases in property taxes, other maintenance fees, and rental fees can undermine your money. Hence, you can consider Exchange-Traded Funds (ETFs) as they are a low-cost alternative compared to mutual funds and other managed investments. In fact, they can offer higher returns as well.

Conclusion

You should not let it happen that you don’t have enough money to cover your after retirement expenses. Be open as early as now and reach out to those who can professionally help you.

You can earn bigger profits and execute better trades here at Trade12 by reading the latest market updates. Striving to become the best forex broker for you, Trade12 reviews daily market events essential to your trading activities to help you improve your overall trading performance. Register an account now and enjoy a wonderful trading experience!

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About Trade12

Trade12 is an exceptional online trading brokerage company that works with an objective to promote fair as well as safe world-class trading enviroment for individuals who are into online trading. This company through years of service has dedicated its efforts in order to assist the traders achieve their financial objectives and attain the lifestyle they always wanted to achieve.